Databricks has entered the cybersecurity market with Lakewatch, a new AI-driven product designed to compete with traditional SIEM services, as the company prepares for a possible public offering.
Introduction to Lakewatch
Databricks, known for data processing and generative AI, is expanding into cybersecurity with Lakewatch. The product is now available for customer adoption, with early testing by major firms like Adobe, National Australia Bank, and Anthropic.
Early Adopters and AI Integration
- Adobe and National Australia Bank are currently using Lakewatch.
- Anthropic employs Databricks for cybersecurity, with its models integrated into Lakewatch.
- Customers can now inquire about adopting the service.
Competition with Established SIEM Providers
Lakewatch positions itself as an alternative to security information and event management (SIEM) services from:
- Palo Alto Networks
- Splunk (owned by Cisco)
- Google
- Microsoft
Pricing Model and Cost Structure
Unlike conventional SIEM pricing based on data storage volume, Databricks will charge for Lakewatch based on the amount of work the software performs. CEO Ali Ghodsi argues that storage-based models are prohibitively expensive for handling growing data volumes in cybersecurity.
Implications for IPO and Valuation
With a current valuation of $134 billion, Lakewatch's success could help Databricks justify this figure to public investors. CEO Ali Ghodsi has not ruled out an IPO as early as 2026, and he states that large language models (LLMs) have matured enough to automate and augment significant portions of cybersecurity operations.
